Business/economics

Camber Energy Eyes Acquisition of Pipeline Service and Construction Company

The independent oil and gas company is aiming to build shareholder value through a change in business focus to midstream with this step into pipeline service and construction.

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Camber Energy, an independent oil and gas company based in Houston, announced the execution of a revised nonbinding Letter of Intent related to its previously announced plan to acquire a midstream pipeline integrity services, specialty construction, and field services company in an all-stock transaction.

Camber’s Interim CEO Louis G. Schott said in a statement, ''We have revised the Letter of Intent based on discussions with the NYSE American. This positions both parties towards a planned closing in the next four to five weeks. Our team made a successful diligence trip this week to meet with the acquisition company’s management.”

“We are very enthusiastic about the acquisition and its potential for growth. If closed, this transaction will enable the company to leverage its available cash reserves and build shareholder value through a change in business focus to pipeline service and construction. With our planned partner, we anticipate substantial opportunities to leverage growth in the markets the pending acquisition is targeting. In fact, we are currently reviewing several acquisition targets to further grow the business,” he said.

The companies contemplate entering into a definitive agreement on or before 7 May.

The transaction will result in the shareholders of the acquired entity obtaining voting control over Camber Energy. Camber Energy plans to pursue additional acquisitions in connection with this potential transaction.